| Sumario: | Measuring quality of life in municipalities entails two empirical challenges. First, collecting a set of relevant indicators that can be compared across the municipalities in the sample. Secondly, using an appropriate aggregating tool in order to construct a synthetic index. This paper measures quality of life for the largest 237 Spanish municipalities using Value Efficiency Analysis (VEA) to derive comparative scores by combining the information contained in 19 partial indicators. VEA is a refinement of DEA (Data Envelopment Analysis) that imposes some consistency in the weights of the indicators used to construct the aggregate index. The indicators cover aspects related to consumption, social services, housing, transport, environment, labour market, health, culture and leisure, education and security. The results show that the Northern and Central regions in Spain attain the highest levels of quality of life, while the Southern regions report low living conditions. Education is the variable that requires the largest improvement in low performing municipalities, followed by health and culture facilities, pollution and crime. Population density, growth and ageing seem to relate positively to quality of life.
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